Up to 300 people joined the protest

Councillors were being asked to approve the cuts, despite protests by angry ratepayers about financial mismanagement, which has left the Borders millions of pounds in the red.

The Scottish National Party had tabled a motion asking for a delay in setting the budget, so that the Scottish Executive could be approached for help.

Cuts were proposed in a number of areas, including community education, funding for voluntary organisations and the closure of three local swimming pools.

The council said the moves were necessary to counteract the �4m overspend in the education budget in previous years.

Financial consequences

It said it also needs to find money to cover new costs created by the McCrone agreement on teachers' pay and an increased demand for special educational services.

Mr Tulley agreed to protesters' demands to address them and said afterwards: "It was disappointing that the meeting was disrupted because important decisions have to be made.

"We've got to declare a legal budget and to delay the thing any further would have significant financial consequences for the council."

SNP group leader, Councillor David Parker, appealed for the executive to assist the council in sorting out the financial crisis.

He said: "We have suffered from financial chaos. What we need now is a period of stability and the Scottish Executive can help us out."

'No other way'

"There are special circumstances here and the executive should recognise that."

Mr Parker claims that, with the �711m underspent on its own budget, it would be easy for the executive to find a few millions for the Borders, in the shape of an interest-free loan.

But Mr Tulley said there was no alternative to the cuts.

Drew Tully: Addressed the demonstrators

He said: "Any loan taken would have to be repaid, which would mean extra debt charges being brought into future years' budgets."

Increasing the council tax was not an option either, he said, as to raise �6m would mean a hike of 28%.

For years the region has been proud of setting a council tax amongst the lowest in Scotland - but now a hike of 10% is to be put in place.

Even with the extra revenue and �14.5m of extra cash from the Scottish Executive, the LibDem/Independent controlled council was still more than �5m in the red, and cuts had to be made.